Explanation:

Time from Monday noon (12 o' clock) to following Monday 2 pm = 7 day 2 hours 

=7×24+2=168+2=170 hours =7×24+2=168+2=170 hours 

Total time gained Monday noon (12 o' clock) to following Monday 2 pm = 2 min + 4 min 48 sec

= 6 min 48 sec = 64860 mins = 645 mins = 345 mins= 6 min 48 sec = 64860 mins = 645 mins = 345 mins

=> The given watch gains 345 mins in 170 hours => The given watch gains 345 mins in 170 hours 

Given that the said watch was 2 minutes low at Monday noon. Hence when it gained 2 minutes, the time was correct.

The given watch gains 345 mins in 170 hours=> The given watch gains 2 mins in 170×534×2 hours=5×5×2 hours = 50 hoursThe given watch gains 345 mins in 170 hours=> The given watch gains 2 mins in 170×534×2 hours=5×5×2 hours = 50 hours

Hence the time was correct after 50 hours from Monday noon 
= after 2 days 2 hours from Monday noon =  2 pm on Wednesday

Hence, option 2 is the correct answer.